o trading platform has so exemplified an era like Robinhood, the do-it-yourself app that enabled so many young first-timers to trade stocks cheaply and prolifically on their phones. The company married gaming with investing in a colorful package that became popular enough that in 2020 it supported a new insurgency that challenged a dusty, out-of-touch Wall Street.
“The reality is that self-directed investing often feels fun and easy when markets are just going up and up,” says Michael Kitces, head of planning strategy at Buckingham Wealth Partners. “It takes a bear market and the experience of losses for us to start to distinguish between our own luck and skill.”
Brian Stone, a project manager with Bath and Body Works, joined Robinhood along with his coworkers during the Covid-19 lockdown of 2020. He traded stocks on the platform but kept a separate 401 account. Stone, 43, says he’s seen a “precipitous drop” in his Robinhood portfolio. At its peak, he was up 42%. Then came this year’s selloff. Now he’s up just 5% and says he trades less frequently than he once did.
Let’s just say the do-it-yourself investors who are posting aren't taking the downturn well. One Reddit user displays a screenshot showing his 89% loss and claims to have said goodbye to $51,000 in two years, including a $30,000 loan at an unusually high 14% APR, which he says he lost in aAnother post shows four shapes — an octagon, a pentagon, a hexagon and a “portfoliogone” — with a picture of a stock chart showing a steep drop.
They lost all cred when they shutdown their servers every time crypto like Dogecoin started to pop. That, and the Citadel scams.
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